- GWR Group completes its deal with Jindalee Resources (JRL) for a 70 per cent interest in its Prospect Ridge Magnesite in northwest Tasmania
- Under the deal, GWR’s wholly-owned subsidiary Tasmanian Magnesium will take its share from HiTec Minerals, a subsidiary of Jindalee Resources
- The cost of the deal is $1 million, which will be paid in cash and over four million GWR shares priced at 17 cents
- The acquisition initiates a move into the “Green” sector
- GWS shares dip 4.55 per cent, trading at 15.8 cents
GWR Group (GWR) has completed its deal with Jindalee Resources for a 70 per cent interest in its Prospect Ridge Magnesite project in northwest Tasmania.
Under the deal, GWR’s wholly-owned subsidiary Tasmanian Magnesium will take its share from HiTec Minerals, a subsidiary of Jindalee Resources.
The cost of the deal is $1 million, which will be paid in cash and over four million GWR shares priced at 17 cents.
As part of the deal, Tasmanian Magnesium is also required to spend a minimum of $2 million and complete a scoping study of the magnesite project within five years.
The acquisition initiates a move into the “Green” sector, with magnesite as the principal ore for magnesium – often referred to as the “green metal,” which is the lightest structural metal on earth.
The project is 51 square kilometres in size and contains two deposits, the Arthur River and Lyons River deposits, which contain the third-largest magnesite inventory in Australia.
“We are pleased to have finalised the SPA for the advanced Prospect Ridge Magnesite project which will propel GWR into the “green sector,” said GWR Chairman Gary Lyons.
“With the opening of the Western Australian borders, the GWR team is excited to conduct a site visit in the coming weeks and begin to engage with a host of services as well as the Port of Bernie and State and Federal governments.”
Magnesium, which has been identified as a Top 50 Critical Mineral by the US, is part of the Australian federal government’s $2 billion fund to finance critical minerals production in the country.
“I firmly believe that this project provides an excellent opportunity to enter the “green” global magnesium market, we have initiated discussions for European offtake of a DSO product that will enable GWR to apply our experience in bulk commodity mining and in addition we have begun to identify technology partners to provide us with the opportunity of benefiting from downstream processing,” Mr Lyons said.
GWR will also focus its studies towards a low-cost, zero waste, high-quality and eco-friendly downstream process that will enable the company to benefit from a value-add processed product and has commenced identifying the required technology.
Shares dipped 4.55 per cent, trading at 15.8 cents per share at 3:45 pm AEDT.